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<br /> reasanably acceptable to Lender. Trus�kor, upan request of Lender, v►ri�� deliv�r to Lend�r �rom time to time �he
<br /> poficies or certi�Ficates o� insurance in form satisfactory to Lender, including st�pulations that ca�erages will no� be
<br /> can�elfed or diminished withaut at i�ast thirty �34y days prior wr�tten notice to Lender. Each insurance poficy also
<br /> shall include an endorsement pro�iding tha��o�erage in fa�or vf Lend�r will not be �mpaired in any way by any ac�,
<br /> amission or de�fault of Trustor or any other person. Shoufd the Real Property be located in an area designa�ed by
<br /> the Administratvr o�the Federaf Emergen�y Management Agency as a special ffaod hazard area, Trus�ar agrees to
<br /> obtain and maintain Federa[ Flaad f nsurance, ifi a�ailable, �or the fu[f unpaid principal balance of the laan and any
<br /> priar liens vn the property securing the laan, up ta the maximum policy iimi�s se� under the Nationa� Flood
<br /> lnsurance Pragram, or as atherwise required by Lender, and to maintain such insurance far the term o�the Ioan.
<br /> Applicat'ron v#Praceeds. Trustar sha11 prvmptly natify Lender of any foss ar damage �o the Praperty. Lender may
<br /> make proo�f of lass if Trustor fiails ta do so within fifteen �15� days o�f the casua�ty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's eiec�ion, recei�e and retain �he proceeds o�any insurance and apply
<br /> the proceeds �to �he reduc�ion o� the Indebtedness, payment of any €�en a��ecting the Property, or �he res�oration
<br /> and repair vf the Property. If Lender e[ects to appCy the proceeds to res�oration and repair, Trustvr shall repair or
<br /> replace the damaged or destroyed Impra�ements in a manner satisfactory to Lender, Lender shall, upan
<br /> sa�isfactary prfl�f af such expenditure, pay or reimburse Trustor fram �he praceeds �ar the reasana}�le cost o�
<br /> repai�r or res�orat€on ifi Trustor is no� in defiaul� under this Deed of Trust. Any proceeds which ha�e not b�en
<br /> dishursed with�n �80 days after their re�eipt and which Lender has no� committed to the repair or restoration of
<br /> fihe Property shall be used �irst to pay any amount owing ta Lender under this Deed of Trust, then �o pay accrued
<br /> interest, and 'the remainder, if any, shall be app��ed to the principal balance af the Indebtedness. Ifi Lender halds
<br /> any praceeds after payment in �Fu�i of the lndebtedness, such proceeds sha�� be paid t� Trustor as Trus�or's
<br /> interests may appear.
<br /> Trustor's Report Qn Insuran�e, LJpon request of Lender, howe�er not mvre than once a year, Trustor shal! furnish
<br /> ta Lender a report nn each exist�ng policy of insurance showing: �1 y the name of the insurer; �2� th� risks
<br /> �nsured; �3} �he amaunt of �he poficy; {4� the property insured, �he then curren� repla�ement �a�ue o� such
<br /> property, and the manner of de�ermining that�alue; and �5� the expiration date �f the palicy. Trustar shali, upon
<br /> request vf Lender, ha�e an independent appraiser satisfa��ory�o Lender de�ermine�he cash�alue replacement c�st
<br /> v�the Property,
<br /> TAX AND INSURANCE RESERVES. 5ub�ect to any [imitafiions and cvnsistent wifih any r�quirements set by applica�le
<br /> faw, Lender may require Trus�ar to maintain vuith Lender reser�es fo� payment vf annual taxes, assessmen�s, and
<br /> insurance premiums, which reser�es sha!! be created by an init�af depas�t and subsequenfi monthly payments, ar
<br /> payments at such vther inter�al as payments under the Nate may be due, af a sum estimated by Lender�to be su��ic�ent
<br /> �o pay the �atal annual taxes, assessments, and insurance premiums Lender reasonab[y an�ticipa�es �a be pa�d �rom
<br /> �hese �eser�es. The reser�e funds sha�! be held �y Lender as a general depvsi��frvm Trus�or, which Lender may satis�y
<br /> by payment of the �axes, assessments, and insurance premiums required to be paid by Trus�or as they become due.
<br /> Lender shall ha�e the right to draw upan �he reser�e funds to pay such items, and Lender shall nat �e requ�red to
<br /> determine the �a�idity or accura�y of any i�em before paying i�. No�hing in the D��d of Trust sha�l be construed as
<br /> requiring Lender to ad�ance vther monies for such purpas�s, and L�nder shall not incur any liability�or anything i� may
<br /> da or omit to do with respec� �a �he reser�e account. 5u}�ject to any limitafiions se� by app�icable �aw. if the reser�e
<br /> funds disciose a shortage or deficiency, Trus�or shall pay such shvrta�e or de�fic�ency as required by L�nder. All
<br /> amaunts in the reser�e account are hereby pledg�d�o further secure the lndebtedness, and Lender is hereby au�harized
<br /> to withdraw and apply su�h amounts on the Indebtedness upan the o�currence v�an E�ent a� Default. Lender shall nat
<br /> be required to pay any interest ar earnings vn the reser�e funds un�ess required by law or agreed to by Lender in
<br /> writing. Lender does n�t hold the reser�e funds in �rust for Trusfi�r, and Lender is not Trustor's agen� �For payment o�
<br /> the taxes and assessments requfred to be paid by Trustar,
<br /> LENDER'S EXPENDITURES. I� any act�on or proceeding is cammenced that ►rvould materially affect Lender's in�er�st in
<br /> �he Praperfy or i�Trustor faifs tv compfy wi�h any pro�ision af this Deed af Trus�or any Related Dacuments, including
<br /> but n�t [imited ta Trustor's failure tv discharge or pay when due any amounts Trustor is required 'to discharge or pay
<br /> under�this De�d of Trust ar any Related Documents, Lender on Trustar's behalf may �but shaii nofi be obliga�ed to� take
<br /> any action that Lender deems appropriate, including but no� limited to dis�ha�ging or paying a!l taxes, liens, security
<br /> in��rests, encumbrances and o�her claims, at any time le�ied or placed on the Prflperty and paying a[f�os�ts fior insuring,
<br /> maintaining and preser�ing �he Prop�rty. All such expenditures incurred or paid by Lend�r for such purposes wi!! then
<br /> bear interest at the ra�e charged und�r the Note from the date incurred ar paid �y Lender to the date of repayment hy
<br /> Trus�or. Alf such expenses wili become a part of �he Indebtedness and, afi Lende�'s option, will �Ay be payah�e on
<br /> demand; �B� be added �o th� balan�e af �he Note and be apportioned among and l�e payabfe wi�h any instal�ment
<br /> paymen�s tv become due dur�ng either �1} the term af any appficabfe insurance palicy; or ��� the remaining term o�F
<br /> the No�e; or �C� be treated as a ba�loon payment which ►nrifl be due and payab(e at�he Note's maturity. The Deed af
<br /> Trus# alsv will secure payment a'� these amounts. Su�h right shal[ be in addi�ion to alf vther rights and �emedies �o
<br /> which Lender may�e enti�led upon Default.
<br /> V1rARRANTY; DEFENSE OF TITLE. The�offawing pro�isions relating to ownership of the Praper�y are a part of this Deed
<br /> of Trust:
<br /> Title. Trustar warrants that: �a} Trustar ho[ds good and marketable title ofi record to the Property in fi�e s�mple,
<br /> �ree and clear of a�� Iiens and en�umbran�es ather fihan �hose set forth in �he R�al Property descr�ptian or in any
<br /> ti�le insurance policy, titfe report, or final title opinion issued in fia�or of, and accepted by, Lender in connectian
<br /> with this Deed o�Trust, and �b� Trustar has the full righ�, power, and authvri�y�o execute and defi�er this Deed of �
<br /> Trus�tv Lender.
<br /> Defense vf Ti�tie. 5ubject �o �he excepfiivn in the paragraph a}�o�e, Trustor warranfis and wi�� �ore�er defend �he
<br /> title tv the Property against the �awful claims of a11 persons. [n the e�ent any action or prviceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee ar Lender under this Deed of Trust, Trustor shall defend �he
<br /> actian at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shaff be entitled ta
<br /> participate in the prnGeeding and to be represented in the praceeding by cvunsel af Lender's vwn chaice, and
<br /> Trustor wi[I de[i�er, vr cause to be deli�ered, to Lender such instruments as Lender may request from time to�ime
<br /> to pe�mit such partiGipa�ion.
<br /> Compliance 1Nith Laws. Trustar warrants that the Property and Trustor's use fl� the Praperty complies with al1
<br /> existing applicable laws, ordinances, and regulatians af go�ernmenta� author�ties.
<br /> Sur�i�a[ o� Rep�esentations and Warranties. A�i representations, wa�ranties, and agreements made by Trustor in
<br /> this Deed of Trust shall sur�i�e the execu�ian and deli�ery o�th�s ❑eed o�Trust, sha[[ be continuing in nafure, and
<br /> shail �emain in full force and effect unti�such tim� as Trustor's Indebtedness shafl be paid in fufl.
<br /> CONDEMNATI�N. The fiallowing prv�isions relat�n�to �ondemnation prac�edings are a part of this Deed ofi Trus�:
<br /> Pro�eedings, If any praceeding in condemnativn is €iled, Trustor sha�l pramptly notify Lender in writing, and
<br /> Trustor shall promptly take su�h steps as may be necessary �o de�end �he action and obtain the award. Trustar
<br /> may be the nominal party in such p�oceeding, but Lender shall be entitled to participate in the praceeding and�to be
<br /> represented in the proceeding by caunse! o� its awn choice, and Trustar wi[[ deli�er or cause �o be deli�er�d to
<br /> Lender such instruments and documentation as may be requested by Lender �ram time to time ta permi� such
<br /> par�icipation.
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